From Financial ‘Times 26/9/63 :
With the arrival of the President of Portugal, idmiral Americo Tomaz, in Angola just over a woek ago, there is speculation about the activities of the rebels in the north of Angola, near the common border with the Congo. There is a at least a possibility that they engage in a few skirmishes and, perhaps, attack isclated coffee plantations as reco gnition of Admiral Tomaz's arrival. The rainy soanson has come to an end and the rebels havc had some time to mill over their plans in Thysville, their Congo base,
Whatever the rebels do it is likely to be only limited since the 50,000 or so Portuguese troops are far better armed, and their mobility has been much in incros ed. Pudgeted expenditure on the armed forces overseas this year amounted to £37.5m, and a big effort is underway in Angola to improve the roads. Ten thousand miles of new roads are being built in northern Angola under a £50n. plan to bo executed in the next three years; thore is a similar plan for the South,
Dr. Salagar often touches on the place of Portugal's "overseas provincas" in his long public speeches, and there can be no doubt of the importance which the Government in Lisbon attaches to Angola in particular, The primary reason for this is economic; the substantial trade deficit of Iberian Portugal is largely covered by oxports from Angola and Mogambique, Coffee exports ars-worth about £20nm. anmni=— — ally, and there are ambitious plans for the development of Angola's mineral resources.
It is expected that iron ore exports will soon be increased to the value of £l4m. onmially against a present level of little over £lm.; and one is reminded of tho statement by Alfred Krupp that Angola is the “last great undeveloped African mineral asset," Krupp is cooperating with the Companhia Uineria do Lobito in the exploitation of the ore and is giving a loan of £16m. to the company.
Not that everyone is happy about the future of this exposed country. American capital has shown little interest in Angola recently and a Pechinery plan. for an aluminium plant with a production of 50,000 tons annually, to have been set up et Dondo by the end of last year, has not yet been initiated,
Dr. Salazar has recently scoffed at 'those who believe that Portugnsl lives mainly on her overseas provinces and that their eventual loss will apell tédal ruin for her." Tut this is still “widely held view outside Portugal — though it would be natural to hedge on the formulation that "total" ruin would be the consequence. Certainly it is felt that, from Dr, Salagar's point of view, the loss of ingole could be disastrous,
The Portuguese economist, Dr. Stucky de Quay,has estimated that producs tion in the overseas territories is worth some £250m,. annually, one-third of Portugal's national incomo, Perhaps the best indication of Angola's economic importance is the extent to which Lisbon depends on Angolan exports, Apart from the lucrative coffee exports, dianonds, exclusively exported to the U.K,, are worth some £7m. a year. pened
Portugal also relios on trade with Angola which brought 41% of her imports from Portugal at a cost of £20m, last year.
Portugal is paying heavily for improvements cf services in Angola, but capital for industrial development in Angola is to a considerable extent being found outside Portugal, There are in addition to the mineral ore, diamond and coffee interests, a major U.K. investment in the Denguela Railway (investment runs at about £0,75m. a year) and Petrofina's oilfields and refining interests - Potrofina has put in a total of 216m.
Tis i+ appears that Portugal is not able to take full advantage of her heavy expenditure on services and military effort; while she is keeping the rebols under control she is unable to tap Angola's natural resources to the fallost extent herself — through shortage of capitel.